Week ahead

What to watch this week in financial news

—Tribune staff, wire report

May 12, 2008

With millions of stimulus checks going out to taxpayers, Wall Street wants to know how that money will be spent. This week's data could help investors gauge the mind-set of the average consumer. On Tuesday, the Commerce Department reports on retail sales in April.

Investors learn more about inflation on Wednesday when the Labor Department releases its consumer price index. Analysts are expecting a 0.3 percent jump in April after increasing by a similar amount in March. Core inflation is expected to increase by 0.2 percent.

Retailers say consumers are changing their habits to accommodate the rising cost of energy and food, but for how long? Several retailers—Wal-Mart Stores Inc. and Macy's Inc.—release first-quarter results this week.

All eyes will be on housing data this week. On Thursday, the National Association of Home Builders releases its May Housing Market Index. On Friday, the Commerce Department reports on housing starts in April.

Last week was downbeat in the stock market, with the major indexes retrenching following three weeks of gains as a few poor earnings results and surging oil prices weighed on investors. Investors will watch Moline-based Deere's quarterly earnings on Wednesday to see if its momentum continues.